Explain any three loan activities of banks in India.

0 votes
79 views
asked Jan 29, 2018 in Social Science by Ankit Agarwal (28,847 points) 7 34 106

Explain any three loan activities of banks in India.

1 Answer

0 votes
answered Jan 29, 2018 by Ankit Agarwal (28,847 points) 7 34 106
 
Best answer

 (a) Banks keep a small proportion of their deposit as cash with themselves.

(b) Major portion of the deposit is used for extending loans. 

(c) The banks mediate between depositors and borrowers in this way. 

(d) They charge high rate of interest on loans than what they offer on deposits.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

One Thought Forever

“There is a close connection between getting up in the world and getting up in the morning.“
– Anon
~~~*****~~~

...